Qld companies target Navy contracts

Media releaseMinister for State Development and Minister for Natural Resources and Mines
The Honourable Anthony Lynham

The Queensland Government is working to ensure the state’s specialist manufacturers can score in the Federal Government’s upcoming multi-billion dollar submarine and patrol boat defence projects.

Speaking in Sydney at the Pacific International Maritime Exposition, State Development Minister Dr Anthony Lynham told delegates that Queensland had more than 500 maritime companies operating across all facets of the industry.

“Queensland is a significant defence industry player with $3.6 billion worth of new Defence orders placed with our businesses in 2014-15,” he said.

“We have a very capable marine industry with a great wealth of experience.”

Dr Lynham was speaking at a business breakfast designed to promote Queensland capabilities to major potential partners or clients, particularly for the upcoming Federal submarine and Pacific patrol boat contracts.

“The Future Submarine Program (SEA1000) will be the largest Defence procurement program in Australia’s history and is in the order of $50 billion depending on fleet size to be announced in the upcoming Defence White Paper 2015,” he said.

The Queensland Government’s Defence Industries Qld unit has been running workshops with Queensland businesses and European and Japanese manufacturers to promote local content opportunities for the submarine program.

The three contending groups are Thyssen Krupp Maritime Systems, DCNS, and the Japanese Government, supported by lead yard Mitsubishi Heavy Industries.

Dr Lynham said that the three groups were to make submission to the Federal Government by the end of November 2015 on the provision of the submarines, including identifying opportunities for Australian industry to participate.

“It is important that these overseas majors know what our state companies capabilities and expertise are,” he said.

“Queensland companies have capabilities complementary to the highly complex, precision work required for submarine build and sustainment.

“We have companies who are already part of the maritime sector submarine supply chain, as well as others with capabilities from our aerospace sector and LNG industry.

“We are working hard to ensure Queensland companies can share in the massive contract book this project is likely to deliver.”

Dr Lynham said DIQld had also been working with companies in the Cairns Solution, a far north Queensland-based group, who are tendering for the $2 billion Pacific Patrol Boat replacement project.

The prime contractor is Teekay Shipping (Australia), who are subcontracting to Damen for technical expertise, BSE Maritime Solutions for the build, and Norship Marine for its support capability.

“This project is worth $594 million, and potentially $1.38 billion over 30 years, and fits well with Queensland’s niche capability to build and sustain war vessels up to 2000 tonnes,” he said.

Dr Lynham was in the United States last week and met US aeronautics giant Lockheed Martin to identify upcoming opportunities for Queensland companies in the production of F-35A Joint Strike Fighters.